While Jetstar, Tiger Air, Quantas and Virgin are committed to fixing their refund policies, the Australian Competition and Consumer Commission (ACCC) will still be starting proceedings against Jetstar for the misleading and deceptive representation around refunds.
The EUs and the Jetstar proceeding are part of a wider investigation in to the terms and conditions of the airline industry.
The competition regulator said earlier this week that the four airlines will make sure that their refund policies and practice comply with the Australian Competition Law (ACL), and the regulator has accepted court enforceable undertakings from the airlines.
“Airlines cannot make blanket statements that flights are non-refundable or charge consumers a fee to get a refund when they are entitled to one free of charge under the ACL.” ACCC Commissioner Rod Sims said.
The regulator said that that the engagement that they have had with the airlines has already had a positive impact in the Airlines compliance.
Jetstar specifically will be reviewing customer complaints between April 2017 and March 2018.
Jetstar admitted that the despite blanket statements, some refunds were only available for expensive fares and their responsibility to provide remedies to their customers was very limited.
The regulator and the airline have made joint submission to the court that the airline should pay $1.95 million and also make a contribution to the consumer and competition regulator’s legal costs.
“No matter how cheap the fares are, airlines cannot make blanket statements to consumers that flights are non-refundable,” Sims said.